[Tan Sir on Stocks 25.8.22] The Hong Kong and US stock indices are in a stagnant situation, clearly indicating a pattern of trading stocks rather than the market.

U.S. stocks have been very strong, and this week's CPI and PPI data have caused temporary market volatility. $S&P 500 Index(.SPX.US)$ $Nasdaq Composite Index(.IXIC.US)$ $Dow Jones Industrial Average(.DJI.US)$ This week, the trend is relatively weak, with the market focusing on the annual global central bank meeting at Jackson Hole. However, considering the recent statements from the Federal Reserve, which have emphasized inflation more than the labor market this month, the likelihood of a slowdown in interest rate cuts has increased, leading to profit-taking in technology stocks. $Microsoft(MSFT.US)$ $Meta Platforms(META.US)$ $Palantir(PLTR.US)$ Recently, there has been significant downward pressure, but it should be noted that they have accumulated substantial gains following their earnings reports. In terms of capital flows, defensive stocks such as $Johnson & Johnson(JNJ.US)$ $Coca-Cola(KO.US)$ $McDonald's(MCD.US)$ The performance is relatively strong.

$Hang Seng Index(800000.HK)$ This week has seen narrow fluctuations. $Hang Seng TECH Index(800700.HK)$ There is a slight increase, but the differences are not significant. Hong Kong stocks are in a "trading stocks, not the market" pattern, while A-shares $SSE Composite Index(000001.SH)$ The strength in A-shares is an important factor driving the stabilization of Hong Kong stocks. Additionally, consumer stocks have shown significant strength, apart from this week's substantial rise in $POP MART(09992.HK)$ performance, they also rose significantly after their results were announced. $MNSO(09896.HK)$ Sports goods stocks also remain strong. $LI NING(02331.HK)$ and $XTEP INT'L(01368.HK)$ Following the performance results, there was a surge in capital investment, even for those that have not yet released their results. $ANTA SPORTS(02020.HK)$ Automobile stocks also regained the significant threshold of 100 Hong Kong dollars. $GEELY AUTO(00175.HK)$ 、 $LEAPMOTOR(09863.HK)$ and $XPENG-W(09868.HK)$ The stock price performance strengthened after the results were announced.

The common factor, aside from the results exceeding market expectations, is that the market was overly pessimistic about the sector due to earlier negative sentiments regarding 'involution' and 'consumption downgrade,' which is another reason for the sharp rise in stock prices. $TENCENT(00700.HK)$ Stocks also regained the significant threshold of 600 Hong Kong dollars. $XIAOMI-W(01810.HK)$ and $KUAISHOU-W(01024.HK)$ Although the performance exceeded market expectations, the current speculative trend is not yet evident; however, there are conditions to maintain a positive long-term outlook.

However, the rotation of capital is more pronounced in Hong Kong stocks, with significant divergence in the performance of innovative drug stocks, such as $ASCLETIS-B(01672.HK)$ The post-results placement of shares has led to pressure on the stock price, $SINO BIOPHARM(01177.HK)$ The stock price experienced a sharp decline after the results were announced, but today it reached a new high again. The semiconductor sector also showed strong performance, $SMIC(00981.HK)$ $HUA HONG SEMI(01347.HK)$ with each at 1347 reaching a new high for the third quarter, reflecting the market's optimistic view on AI infrastructure, $ZTE(00763.HK)$ significantly rising; however, $YOFC(06869.HK)$ there was a sharp drop on Thursday.

The Hong Kong stock market clearly exhibits a pattern of "trading stocks rather than the market"; although the market sentiment is favorable, it is advisable to rely more on technical analysis for trading.